SHANGHAI: Starbucks is looking to more than triple its revenue and almost double its store count in China over the next five years, doubling down on the market as traffic growth comes under pressure in the US.
The US coffee chain, which recently raised $7.15 billion in a deal with Nestle, aims to have 6,000 stores in the country by the end of 2022, it said in a statement. It has around 3,300 stores in 141 cities in China currently.
Starbucks dominates China’s coffee scene, although it is seeing more competition from smaller rivals, similar to how it is coming under pressure from a “third wave” of boutique coffee sellers and cheaper rivals in the US.
Late last year it launched its first overseas “Reserve Roastery” — an opulent flagship store with gourmet coffees and a bakery — in Shanghai, where executive chairman Howard Schultz said store numbers in China would hit 10,000 within a decade, overtaking even the US market.
Starbucks also said it expects to more than double its operating income in China over the next 5 years, relative to 2017.
It made $3.24 billion in China/Asia Pacific revenue in the past financial year while operating income was $764.8 million, according to calculations by Reuters. A breakdown for China alone was not immediately available.
This month Starbucks struck a deal with Nestle, the world’s largest food and beverage company, to give the Swiss firm exclusive rights to sell Starbucks’ packaged coffees and teas around the world.
Starbucks said the alliance with Nestle would help further extend the coffee chain’s reach and scale throughout China.
“Starbucks will look to leverage the recently announced global coffee alliance with Nestle to provide even more at-home options to the Chinese consumer in the future,” it added.
Starbucks says aims to triple China revenue by 2022
Starbucks says aims to triple China revenue by 2022
Record $14.4bn rise in Saudi holdings of US Treasuries
RIYADH: Saudi Arabia increased its holdings of US Treasuries by 10.71 percent in November in what was the largest increase since data tracking began in 1974, according to the latest official data,
The Kingdom’s US Treasury portfolio stood at $148.8 billion in the month, up $14.4 billion from October.
Following the increase, Saudi Arabia moved up one place to 17th place among the largest foreign holders of US Treasuries.
Countries including Saudi Arabia invest in US Treasuries for their perceived safety, liquidity, diversification benefits, and alignment with economic ties to the US.
The Kingdom’s holdings were 17.25 percent higher in November compared with January 2025.
The allocation highlights Saudi Arabia’s preference for longer-dated US government debt as part of its foreign reserve strategy, focused on capital preservation, liquidity, and diversification amid global market volatility.
Saudi Arabia’s holdings included $106.8 billion in long-term securities, accounting for 72 percent of the total, while short-term holdings stood at $42 billion, or 28 percent.
Globally, Japan remained the largest foreign holder of US Treasury securities at $1.2 trillion, followed by the UK at $888.5 billion, mainland China at $682.6 billion, and Belgium at $481 billion.
Canada ranked fifth with holdings of $472.2 billion, followed by the Cayman Islands and Luxembourg in sixth and seventh positions, with portfolios valued at $427.4 billion and $425.6 billion, respectively.
France placed eighth with $376.1 billion, followed by Ireland at $340.3 billion and Taiwan at $312.5 billion.
Other countries included in the top 20 list include Switzerland, Singapore, Hong Kong, and Norway, as well as India and Brazil.
The trade relationship between Saudi Arabia and the US remains strong, with the Kingdom exporting SR5.20 billion ($1.39 billion) worth of non-oil goods in October, data from the General Authority of Statistics showed.
Speaking to Arab News in October, Nasser Saidi, founder and president of economic and financial advisory services firm Nasser Saidi & Associates and a former minister of economy and trade in Lebanon, said US Treasuries are a critical pillar of stability.
“Holding treasuries allows Saudi Arabia to meet its international payment obligations — finance imports, service external debt, portfolio, and capital flows — provide a buffer against oil revenue shocks, while also generating a steady, low-risk stream of income,” he said.
